New Delhi, July 02, 2019: The report titled “Riyadh Hospitality Market Outlook to 2023 – Growth in MICE Business and Surge in Tourism Supporting Occupancy Rate of Hotel Industry” provides information on overview of hospitality market within Riyadh, factors influencing the hospitality market, current and future demand and supply, market insight and performance, key expected upcoming Hotel projects, key features and characteristics of Hotels in Saudi Arabia, average daily / monthly / annual rental rates and revPAR of hotels in Riyadh, Average daily occupancy rates of hotel in Riyadh, Riyadh hospitality market outlook, opportunities and future development trends, what gaps exist in Riyadh hospitality market, competitive analysis of major Hotels within Riyadh. The report concludes with recommended branded operators, Recommendations highlighting the success factors for developing luxurious resorts and Recommendations for construction of a 3 star Hotel. The report is useful for 5 star as well as 4 star hoteliers, investors in Riyadh hospitality Sector, hospitality industry associations, government / regulatory authorities and Ministry of Tourism.
Current and Future Demand and Supply:
The Hospitality market in Riyadh is showing significant potential owing to improvement in tourism, surge in personal disposable income among Saudi Nationals, developing infrastructure capabilities, increasing influx of foreign guests and others. However there exists an imbalance, in the market equilibrium skewed towards supply of hotels in Riyadh. Both domestic as well as international tourists have been identified as the major target audience for the hospitality sector in the capital city Riyadh that are majorly looking for accommodation within premium hotels and resorts. Apart from tourists, people also come for business events and meetings (local / domestic and foreign expats) and prefer to book conference rooms and exhibition halls for project meetings. Riyadh is also known as the financial hub of the country as it consists of financial districts and business parks which host major conferences and events.
Riyadh Hospitality Market Insight:
Hospitality market of Riyadh faced a challenging economic / business environment during 2017-2018 owing to volatility / price fluctuations in crude oil after years of relative stability. Apart from that, delays in the completion of hotel infrastructure projects coupled with a decline in terms of business tourism have created a negative impact on the market. However, the market recovered during the year 2018 owing to several government initiatives which led to a higher supply of hotel rooms in the capital city Riyadh.
Riyadh Hospitality Market Outlook:
Saudi Arabia faced fluctuating crude oil prices during 2015-2017 which affected their economy negatively. It recovered after 2018 majorly due to government initiatives and change in policies. The diversification efforts led by the Government of Saudi Arabia’s have led to a subsequent boost for employment and its GDP outlook. Major hotel groups within Riyadh are further planning to start open up hotels across the nation especially in the capital city Riyadh as they aim to meet the ever growing demands of both domestic tourists and international visitors on the account of major infrastructure projects and easing visa requirements.
Over the years, major brands have contributed to the supply of hotels in the KSA. Marriott International has opened 2 Aloft Hotels (hotel chain owned by Starwood Hotels and Resorts) in the country (in Riyadh and Dhahran), Rocco Forte Hotels opened the Assila Hotel in Jeddah and in 2018 both Hilton and Swiss-Belhotel International opened three hotels each. There is also interest from other large groups such as Accor and InterContinental.
Recommendations Regarding Success Factors of Developing Hotels
Location is a factor of paramount importance in the hospitality sector. Location can affect a Customer’s buying decision in many ways, Proximity to the Airport, Connectivity within the city, proximity to Shopping malls and places of Leisure/Sightseeing, the overall surroundings of the hotels, other infrastructure/hotels located near the hotel and others are all factors people consider with regards to location in the Hospitality sector. The design of Hotels should be unique but elegant. Since Riyadh caters to mostly high-profile customers, and thus should focus on comfort, elegance and grandeur. Brands have been seen to use their Architecture, as marketing material. The Architecture must complement the natural environment. It plays a massive role in giving a unique and personalized experience to guests, regardless of a hotel’s brand affiliation
Hoteliers in order to diversify their business operations must try to identify their target customers i.e. origin of their customers, income class and geography of their customers.
Competitive Analysis:
The hospitality market within Riyadh was observed to be highly competitive in terms of their offerings and the prices they offer. Each 3 star hotel has to compete in order to gain a new customer, so the quality of offerings automatically improves. Construction parameters and services offered become the basis for competition. The existing hotels are offering attractive discounts on room rates to increase the occupancy however at the cost of the ADRs, thus adding significant pressure on margins.
Competition via Hotel Type: Within Riyadh, the mid-market hotel segment is giving a stiff competition to the luxury hotel segment, which has dominated the Riyadh hospitality sector in terms of supply and pricing for a long period of time. The mid-market hotel segment includes mid-range priced hotels with modern amenities at lower costs. It has helped to generate market demand from emerging countries thereby, increasing occupancy rates yet causing a downward pressure on ADR
Key Segments Covered:
By Type of Hotels
One Star
Two Star
Three Star
Four Star
Five Star
Key Target Audience
5 star, 4 star and 3 Star hoteliers
Investors in Hospitality Sector
Hospitality Industry Associations
Government/Regulatory Authorities
Ministry of Tourism
Time Period Captured in the Report:
Historical Period: 2013-2018
Future Forecast: 2019-2023
Case Studies Covered:
Hyatt Palace
Double Tree –By Hilton
Mira Trio Hotel
Carawan Al Fahad Hotel
Al Mashreq Boutique Hotel
Business Inn Tahlia Hotel
Hotel Novotel (Riyadh) Ibis Riyadh (Olaya Street)
Holiday Inn (Olaya Riyadh)
Key Topics Covered in the Report
Factors Influencing the Hospitality Market in Riyadh, KSA
Demand and Supply Analysis for Riyadh Hospitality Sector
Riyadh Hospitality Market Insight and Performance
Key Expected Hospitality Projects in Riyadh
Key Features and Characteristics of Hotels in Saudi Arabia
Average Daily / Monthly / Annual Rental Rates And RevPAR of Hotels in Riyadh
Average Daily Occupancy Rates of Hotel in Riyadh
Riyadh Hospitality Market Outlook, Opportunities and Future Development Trends
Does the Landscape of Hospitality in Saudi Arabia is Forecasted to be Positive and Encouraging to Invest in this Sector?
What Gaps Exist in Riyadh Hospitality Market?
Recommendations Regarding Success Factors of Developing Hotels
Recommended Branded Operators for Hospitality Sector in Riyadh
Recommendation for Construction of 3 Star Hotels in Riyadh
Competitive Analysis of Case Studies within Riyadh Hospitality Market
Case Studies of Major Hotels in Riyadh
For more information on the research report, refer to below link:
Riyadh Hospitality Market Research Report
Corporate Comm India (CCI Newswire)
